Section 42
Borrowing powers for special purposes
of Local Authorities Ordinance, 1996
—
In addition to the powers of borrowing conferred upon a local authority by section 41 and subject to any other written laws, a local authority may, for the purpose of carrying out any development for residential, commercial and industrial undertakings, raise by way of loan from any person such amounts of money at such rates of interest and upon such terms and conditions as may be agreed upon between the local authority and that person with the approval of the
Majlis Mesyuarat Kerajaan Negeri.
(2)
Any loan made to a local authority under this section may be secured by a first mortgage or a first charge or by debentures upon the assets, and the revenues derived from the assets, in respect of which the money is borrowed but not upon any other assets or revenue of the local authority.
(3)
The local authority may, in consultation with the State financial authority and with the approval of the Minister, make regulations to provide the method of issue, transfer, redemption or other dealing with shares, stock, bonds, debentures or debenture stock issued under this Ordinance.